CTP hike for Canberra drivers

Compulsory third party insurance premiums in the ACT will rise by 10 per cent or about $52 from September.

The ACT CTP regulator Megan Smithies has approved the hike in CTP premiums charged by NRMA, making the premium for a family car $578.70.

That will take the average cost of registering a car to $1,026.

The ACT has the highest CTP premiums of any jurisdiction in Australia, with premiums paid by residents across the border in Queanbeyan varying between $362 and $385.

The announcement coincides with Treasurer Andrew Barr challenging the Greens and Liberals to back legislation to overhaul the CTP scheme.

The Government introduced a bill last year designed to encourage more competition among CTP providers and in turn bring down insurance costs.

The NRMA is the only company providing CTP in the Territory because of the cost of dealing with complex accident claims.

Labor has proposed changes including capping payouts, shifting the balance of the scheme away from compensation to rehabilitation, and bringing the ACT more into line with other states.

The Government has not had support for its bill, with the Liberals and the Greens saying it would leave accident victims worse off.

A Public Accounts Committee investigation has also recommended changes, to which the Government is yet to respond.

Labor will now bring the bill on for debate in the Legislative Assembly next month.

Treasurer Andrew Barr says the Government is willing to modify the proposed changes, and a compromise will be revealed before the debate.

"The Government will be flexible and will seek to work with the other parties," he said.

"But we don't want to strip away the key elements of the bill, and that is to focus more on early medical treatment, and to try and change the culture of the system within the ACT.

"It shouldn't be able maximising legal cases, it should be about maximising medical treatment."

Mr Barr says the Greens and Liberals should want to make CTP fairer and reduce insurance costs.

"There is nothing like an impending election to sharpen the minds of one's political opponents," he said.

"The Liberal Party have talked about cost of living issues. Well here would be a very practical way they could join with the Government to ensure that we are putting some downward pressure on CTP premiums."

Still waiting

Liberals MLA Brendan Smyth says the tri-partisan committee recommended changes be made to the bill before it is passed.

"There are flaws in this. The Government has acted hastily and then very very slowly. The Government was late to table the review of the Compulsory Third Party ACT, as required by the law," he said.

"And indeed the Government has now been slow to respond.

"They're very quick to blame, but their very slow to take any of the burden that would make it better for people in the ACT in regard to cheaper compulsory third party."

He says he will not be rushed on the issue.

"I'm quite surprised that the minister is saying that everybody needs to do something when in fact we're waiting on the Government," he said.

The Greens is also waiting to see the Government's response to the committee's recommendations.

Leader Meredith Hunter says it is unclear what the Government is proposing.

"It would have been far more helpful to have received that response in the last sitting week, before we head into a double sitting week," she said.

"I would urge the Government to come out with its response to let us all know what changes they may be proposing around the legislation so that we have the proper amount of time to look at those before we head into the sitting week and have to debate the legislation."

Ms Hunter says she hopes the Government offers briefings on the proposed changes.

"We need to make sure that any scheme would not mean that anyone injured in car accidents are left out of pocket," she said.